Commission File Number |
Registrant; State of Incorporation; Address; and Telephone Number |
IRS Employer Identification No. |
||||||||||||
001-09057 | WEC ENERGY GROUP, INC. | 39-1391525 |
Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||||||||||
Common Stock, $.01 Par Value | WEC | New York Stock Exchange |
SIGNATURES | |||||
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. | |||||
WEC ENERGY GROUP, INC. | |||||
(Registrant) | |||||
/s/ WILLIAM J. GUC | |||||
July 31, 2024 | William J. Guc, Vice President and Controller |
CONDENSED CONSOLIDATED INCOME STATEMENTS (Unaudited) | Three Months Ended | Six Months Ended | ||||||||||||||||||||||||
June 30 | June 30 | |||||||||||||||||||||||||
(in millions, except per share amounts) | 2024 | 2023 | 2024 | 2023 | ||||||||||||||||||||||
Operating revenues | $ | 1,772.0 | $ | 1,830.0 | $ | 4,452.2 | $ | 4,718.1 | ||||||||||||||||||
Operating expenses | ||||||||||||||||||||||||||
Cost of sales | 469.7 | 533.0 | 1,396.8 | 1,842.7 | ||||||||||||||||||||||
Other operation and maintenance | 533.4 | 496.0 | 1,064.2 | 1,030.0 | ||||||||||||||||||||||
Depreciation and amortization | 336.6 | 313.9 | 670.0 | 619.4 | ||||||||||||||||||||||
Property and revenue taxes | 67.5 | 61.8 | 143.0 | 131.4 | ||||||||||||||||||||||
Total operating expenses | 1,407.2 | 1,404.7 | 3,274.0 | 3,623.5 | ||||||||||||||||||||||
Operating income | 364.8 | 425.3 | 1,178.2 | 1,094.6 | ||||||||||||||||||||||
Equity in earnings of transmission affiliates | 46.8 | 43.6 | 91.6 | 87.4 | ||||||||||||||||||||||
Other income, net | 40.6 | 48.3 | 84.7 | 89.1 | ||||||||||||||||||||||
Interest expense | 200.6 | 178.7 | 392.6 | 350.9 | ||||||||||||||||||||||
Other expense | (113.2) | (86.8) | (216.3) | (174.4) | ||||||||||||||||||||||
Income before income taxes | 251.6 | 338.5 | 961.9 | 920.2 | ||||||||||||||||||||||
Income tax expense | 41.6 | 48.5 | 129.3 | 122.6 | ||||||||||||||||||||||
Net income | 210.0 | 290.0 | 832.6 | 797.6 | ||||||||||||||||||||||
Preferred stock dividends of subsidiary | 0.3 | 0.3 | 0.6 | 0.6 | ||||||||||||||||||||||
Net loss attributed to noncontrolling interests | 1.6 | — | 1.6 | 0.2 | ||||||||||||||||||||||
Net income attributed to common shareholders | $ | 211.3 | $ | 289.7 | $ | 833.6 | $ | 797.2 | ||||||||||||||||||
Earnings per share | ||||||||||||||||||||||||||
Basic | $ | 0.67 | $ | 0.92 | $ | 2.64 | $ | 2.53 | ||||||||||||||||||
Diluted | $ | 0.67 | $ | 0.92 | $ | 2.64 | $ | 2.52 | ||||||||||||||||||
Weighted average common shares outstanding | ||||||||||||||||||||||||||
Basic | 315.9 | 315.4 | 315.8 | 315.4 | ||||||||||||||||||||||
Diluted | 316.2 | 315.9 | 316.1 | 315.9 | ||||||||||||||||||||||
Dividends per share of common stock | $ | 0.8350 | $ | 0.7800 | $ | 1.6700 | $ | 1.5600 |
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited)
(in millions, except share and per share amounts)
|
June 30, 2024 | December 31, 2023 | ||||||||||||
Assets | ||||||||||||||
Current assets | ||||||||||||||
Cash and cash equivalents | $ | 224.0 | $ | 42.9 | ||||||||||
Accounts receivable and unbilled revenues, net of reserves of $166.9 and $193.5, respectively | 1,242.7 | 1,503.2 | ||||||||||||
Materials, supplies, and inventories | 695.8 | 775.2 | ||||||||||||
Prepaid taxes | 182.6 | 173.9 | ||||||||||||
Other prepayments | 52.6 | 76.8 | ||||||||||||
Other | 186.4 | 223.7 | ||||||||||||
Current assets | 2,584.1 | 2,795.7 | ||||||||||||
Long-term assets | ||||||||||||||
Property, plant, and equipment, net of accumulated depreciation and amortization of $11,263.4 and $11,073.1, respectively | 32,263.8 | 31,581.5 | ||||||||||||
Regulatory assets (June 30, 2024 and December 31, 2023 include $82.3 and $85.9, respectively, related to WEPCo Environmental Trust Finance I, LLC) | 3,393.1 | 3,249.8 | ||||||||||||
Equity investment in transmission affiliates | 2,055.8 | 2,005.9 | ||||||||||||
Goodwill | 3,052.8 | 3,052.8 | ||||||||||||
Pension and OPEB assets | 901.2 | 870.9 | ||||||||||||
Other | 331.4 | 383.1 | ||||||||||||
Long-term assets | 41,998.1 | 41,144.0 | ||||||||||||
Total assets | $ | 44,582.2 | $ | 43,939.7 | ||||||||||
Liabilities and Equity | ||||||||||||||
Current liabilities | ||||||||||||||
Short-term debt | $ | 761.3 | $ | 2,020.9 | ||||||||||
Current portion of long-term debt (June 30, 2024 and December 31, 2023 include $9.1 and $9.0, respectively, related to WEPCo Environmental Trust Finance I, LLC) | 1,157.4 | 1,264.2 | ||||||||||||
Accounts payable | 799.9 | 896.6 | ||||||||||||
Customer credit balances | 178.8 | 236.2 | ||||||||||||
Other | 594.2 | 696.9 | ||||||||||||
Current liabilities | 3,491.6 | 5,114.8 | ||||||||||||
Long-term liabilities | ||||||||||||||
Long-term debt (June 30, 2024 and December 31, 2023 include $80.9 and $85.3, respectively, related to WEPCo Environmental Trust Finance I, LLC) | 16,907.8 | 15,512.8 | ||||||||||||
Deferred income taxes | 5,265.4 | 4,918.5 | ||||||||||||
Deferred revenue, net | 345.5 | 356.4 | ||||||||||||
Regulatory liabilities | 3,834.7 | 3,697.7 | ||||||||||||
Intangible liabilities | 568.0 | 594.8 | ||||||||||||
Environmental remediation liabilities | 437.0 | 463.7 | ||||||||||||
Asset retirement obligations | 543.6 | 374.2 | ||||||||||||
Other | 794.2 | 835.3 | ||||||||||||
Long-term liabilities | 28,696.2 | 26,753.4 | ||||||||||||
Commitments and contingencies | ||||||||||||||
Common shareholders' equity | ||||||||||||||
Common stock – $0.01 par value; 650,000,000 shares authorized; 316,079,401 and 315,434,531 shares outstanding, respectively | 3.2 | 3.2 | ||||||||||||
Additional paid in capital | 4,168.3 | 4,115.9 | ||||||||||||
Retained earnings | 7,919.2 | 7,612.8 | ||||||||||||
Accumulated other comprehensive loss | (7.8) | (7.7) | ||||||||||||
Common shareholders' equity | 12,082.9 | 11,724.2 | ||||||||||||
Preferred stock of subsidiary | 30.4 | 30.4 | ||||||||||||
Noncontrolling interests | 281.1 | 316.9 | ||||||||||||
Total liabilities and equity | $ | 44,582.2 | $ | 43,939.7 |
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) | Six Months Ended | |||||||||||||
June 30 | ||||||||||||||
(in millions) | 2024 | 2023 | ||||||||||||
Operating activities | ||||||||||||||
Net income | $ | 832.6 | $ | 797.6 | ||||||||||
Reconciliation to cash provided by operating activities | ||||||||||||||
Depreciation and amortization | 670.0 | 619.4 | ||||||||||||
Deferred income taxes and ITCs, net | 321.5 | 113.4 | ||||||||||||
Contributions and payments related to pension and OPEB plans | (7.5) | (9.2) | ||||||||||||
Equity income in transmission affiliates, net of distributions | (19.6) | (13.4) | ||||||||||||
Change in – | ||||||||||||||
Accounts receivable and unbilled revenues, net | 254.2 | 529.5 | ||||||||||||
Materials, supplies, and inventories | 79.4 | 213.3 | ||||||||||||
Collateral on deposit | 47.4 | (28.9) | ||||||||||||
Amounts recoverable from customers | (17.0) | 33.7 | ||||||||||||
Other current assets | 19.1 | 16.2 | ||||||||||||
Accounts payable | (90.3) | (388.4) | ||||||||||||
Customer credit balances | (57.4) | (10.9) | ||||||||||||
Other current liabilities | (53.1) | (28.9) | ||||||||||||
Other, net | (78.3) | (89.1) | ||||||||||||
Net cash provided by operating activities | 1,901.0 | 1,754.3 | ||||||||||||
Investing activities | ||||||||||||||
Capital expenditures | (1,138.4) | (1,073.7) | ||||||||||||
Acquisition of West Riverside Energy Center | (98.2) | (95.3) | ||||||||||||
Acquisition of Whitewater Cogeneration Facility |
— | (76.0) | ||||||||||||
Acquisition of Sapphire Sky Wind Energy LLC, net of cash acquired of $0.3 | — | (442.6) | ||||||||||||
Acquisition of Samson I Solar Energy Center LLC, net of cash acquired of $5.2 | — | (249.4) | ||||||||||||
Acquisition of Red Barn Wind Park | — | (143.8) | ||||||||||||
Capital contributions to transmission affiliates | (30.3) | (33.3) | ||||||||||||
Proceeds from the sale of assets | 0.9 | 30.4 | ||||||||||||
Proceeds from the sale of investments held in rabbi trust | 14.8 | 10.4 | ||||||||||||
Payments for American Transmission Company LLC's construction costs that will be reimbursed | (0.6) | (19.1) | ||||||||||||
Other, net | 1.0 | (9.0) | ||||||||||||
Net cash used in investing activities | (1,250.8) | (2,101.4) | ||||||||||||
Financing activities | ||||||||||||||
Exercise of stock options | 4.7 | 2.3 | ||||||||||||
Issuance of common stock | 38.2 | — | ||||||||||||
Purchase of common stock | (3.2) | (9.5) | ||||||||||||
Dividends paid on common stock | (527.2) | (492.1) | ||||||||||||
Issuance of long-term debt | 2,074.2 | 1,450.0 | ||||||||||||
Retirement of long-term debt | (785.4) | (76.8) | ||||||||||||
Change in commercial paper | (1,260.4) | (556.6) | ||||||||||||
Purchase of additional ownership interest in Samson I Solar Energy Center LLC from noncontrolling interest | (28.1) | — | ||||||||||||
Payments for debt extinguishment and issuance costs | (23.6) | (9.6) | ||||||||||||
Other, net | (1.7) | (2.7) | ||||||||||||
Net cash provided by (used in) financing activities | (512.5) | 305.0 | ||||||||||||
Net change in cash, cash equivalents, and restricted cash | 137.7 | (42.1) | ||||||||||||
Cash, cash equivalents, and restricted cash at beginning of period | 165.2 | 182.2 | ||||||||||||
Cash, cash equivalents, and restricted cash at end of period | $ | 302.9 | $ | 140.1 |